Feb. 8 (Bloomberg) -- Slovak tax revenue will fall short of
the 2013 target as economic growth slows more than predicted,
making it harder for the eastern euro-area member to cut budget
deficit, the Finance Ministry said.

The government will probably collect 361 million euros
($484 million) less than planned in taxes, representing 0.5
percent of gross domestic product, the ministry said in an e-mail from Bratislava. The shortfall is projected to widen to 0.9
percent in 2014 and to 1.3 percent a year after that.

The calculations are based on the last month’s revision of
economic growth, which will probably reach 1.2 percent this year
compared with previously forecast 2.1 percent. Hit by the
slowing demand for exports from the west, the Slovak economy is
failing to create jobs, reducing proceeds from income tax and
boosting state spending on welfare.

The administration of Prime Minister Robert Fico is
striving to cut the budget gap to 2.9 percent of GDP as early as
this year to differentiate itself from the troubled members of
the euro area, which the eastern country joined in 2009.

The ministry will take additional measures to meet the 2013
budget plan, which Moody’s Investors Service on Jan. 9 called
“challenging.”

Defections to public pensions from the private system will
cut state welfare subsidies by 250 million euros, Kazimir said.
The remaining 111 million euros of the revenue shortfall will be
offset by a spending freeze and higher dividends from state-controlled companies, he said.